HIGH-FREQUENCY traders and the operators of dark pools could soon come under heavier government scrutiny.

The federal government has asked Treasury to examine the licensing of dark pools, and whether the financial market licensing regime, which was designed in 2001, needs to be adapted to account for the growth in HFTs and off-market exchanges.

Treasury has also been asked to consider if HFTs need to be regulated.

''The current licence approach was based around large public exchanges, like the ASX,'' the federal Minister for Financial Services, Bill Shorten, said.

''Australia's licence regime should be able to accommodate these new market developments such as dark pools, and should be flexible enough to properly regulate any additional market types that may emerge in the future.''

Dark pools are not formally licensed: operators are subject to the market integrity rules only because they are participants in public exchanges.

The head of the Australian Securities Exchange, Elmer Funke Kupper, has welcomed the move.